USD: JPY weakens for optimism in the trade agreement – MUFG

The US dollar (USD) weakened towards the closure of Wednesday’s negotiation, but has bounced helped in part by optimism about the rhythm in which the US could be willing to reach agreements with key commercial partners. The comments made by the president of the Fed, Powell, in the Chicago Economic Club, clearly indicated the difficulty in which the central banks are in trying to manage the risks and the risks of growth down. Our impression was that Powell clearly bowed in favor of focusing on inflation and ensuring price stability, arguing that this was the basis for stronger economic growth, says Derek Halpenny, MUFG FX analyst.

The USD bounces for optimism in commercial conversations with Japan

“The lowest UST Bonds weighed on the US dollar and were the comments of the Minister of Economic Revitalization of Japan, Ryosei Akazawa, who helped boost the dollar bouncing. President Trump had previously published in social truth that had achieved” great progress “in the initial commercial conversations with Japan, and Akazawa echo USA wanted an agreement within the 90 -day period of tariff.

“The duration of these meetings makes it difficult for us to create that something substantial has been agreed and for Japan this meeting was about ‘building trust’. However, another meeting has been scheduled and the comments made have understandably raised optimism. Perhaps we should not surprise ours FX has not been raised as a subject. “

“We expect the ECB to cut in 25 basic points today and the ECB should indicate the possibility of additional cuts since the risks of growth will probably be seen as greater than the inflationary risks. Governor of the Bock, Macklem, we should not expect a strong conviction in the orientation of the policy given the high uncertainty.